More like competition for Falcon 1e and Pegasus; I don't see anyone squeezing a person and a capsule and an abort system in 500 lbs. Also, F1e will cost 11 million vs. 10 million for this, but launch 2200 lbs, and Pegasus does 980 lbs although it may be more expensive. Still, it's always good to have another competitor in the market.

The video's pretty stupid by the way, with the whole changing world environment spiel that really doesn't have much to do with launching stuff into space. This whole thing is also not that different from Pegasus, so all the blabbering about innovation is more marketing-speak than substance. But then that's Branson for you .

_________________Say, can you feel the thunder in the air? Just like the moment ’fore it hits – then it’s everywhereWhat is this spell we’re under, do you care? The might to rise above it is now within your sphereMachinae Supremacy – Sid Icarus

Actually, I think that it will be a huge success. Just because no one is doing it, does not mean that there isn't demand. Remember, to launch a small satellite, any satellite, requires huge sums of money. With modern technology, there is a lot you can do with a small satellite. I think that they will make tons of money, but it may come with the problem of overcrowding Earth's orbits.

_________________“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return.” -Anonymous